Moscow, March 22, 2005. CenterTelecom management reviewed the status of Tver and Tula branches account receivables in 2004. Respective reports were presented by CenterTelecom Deputy General Directors - branches directors Yevgeny Savenkov and Yuri Lepikhov.

As of Y 2004 results, telecom services receivables at CenterTelecom Tver branch grew 51% and totaled RUR 130.174 million. The major debtors are the social security institutions whose debts in 2004 grew 184% (43% of the total receivables). Telcos' debts increased by 39%, amounts due from corporate clients and private individuals grew 2%.

The total receivables of CenterTelecom Tula branch amounted to RUR 285 million, including RUR 191 million (67%) of reimbursement due for the social discounts provided, while other receivables dropped by 1.7% y-o-y and totaled RUR 80.3 million. According to the information provided, the drop is due to the decrease of the overdue (past 90 days) accounts by 28%. A set of collection activities accounted for a 3% decrease of receivables due from private individuals and business customers. Receivables due from state entities increased by 5%.

CenterTelecom is conducting activities aimed at the reduction of account receivables. Currently all CenterTelecom branches have collection committees with collection schedules established with motivated qualified personnel working with the debtors. Furthermore, in 2004 the company filed 19 627 lawsuits to collect a total of RUR 544.099 million, including 67 lawsuits for a total of RUR 461.26 million concerning the reimbursement due for social discounts on the telecom services provided.

For more information please contact:
Information Policy Department Director
Yana Lavrentyeva
+7(095)793-24-86
pr@centertelecom.ru

CenterTelecom is a leading fixed telecommunications company providing a wide range of telecom services in the Central Federal District, where over 20% of the population of Russia resides. CenterTelecom offers the full range of telecommunication services, including fixed telephony, Internet, IP-telephony, data transmission, cable TV, wired and VHF broadcasting. The company actively develops modern multiservice and SDH networks as well as new WLL systems. The Company trades on RTS (ESMO, ESMOP), Moscow Interbank Currency Exchange (CTEL, CTELP) and has ADR Level 1 common stock program (CRMUY).